Portugal Telecom Eyes Asia

Portugal Telecom creates Asia PT sub-holding and invests €15M in Asia

August 1, 2005

2 Min Read

LISBON, Portugal -- Portugal Telecom, SGPS, S.A. (PT), through its subsidiary PT Investimentos Internacionais, announces today that it has created a sub-holding Asia PT, which will aggregate all the businesses that PT currently manages in the Asian continent, as part of the Group’s ongoing investment and streamlining of businesses.

Asia PT will manage all the subsidiaries that PT operates in the Asian continent - CTM, TV Cabo Macau, Directel Macau, Telesat and Timor Telecom – being simultaneously the vehicle for growth in this region.

PT will invest approximately Euro 10 million in the creation of China Pathway Logistics (CPL), resulting in a 66% stake in the company. CPL will be the partner of the Ministry of Transportation of the Chinese Government in the Archway Joint Venture, which will guarantee the location based services rendered in all the Chinese territory. Preliminary forecasts show that Archway, which will be 70%-owned by CPL, will have over 300 thousand customers by the end of 2008, with revenues of approximately Euro 100 million.

Additionally, PT will invest around Euro 5 million to reinforce its operations in Macau, namely to develop content business, to consolidate the Pay TV market and to identify diversification opportunities. This investment includes the subscription of unpaid capital in TV Cabo Macau, increasing PT’s stakes to 87.5%.

The creation of Asia PT should result in significant operational benefits, through a more integrated management of the assets in the region, leveraging on an improved financial structure.

Asia PT is well positioned to benefit from the outstanding growth opportunity of the Asian continent. Given PT’s expertise and proven know-how, PT expects that its current and future operations should be well positioned to capture a significant portion of this growth, with the partnership with the Ministry of Transportation of the Chinese Government, announced today, being a crucial element.

Portugal Telecom Group

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